In this paper, we describe the role of trust, bargaining power and contracts in governing information sharing and material flow coordination in supply chains. We present a conceptual framework showing how these governance mechanisms affect coordination and ultimately, chain performance. Five types of trust – calculative, competence, integrity, predictability and contractual - are thought to play an important role in determining the efficacy of information sharing. We pose three research questions on the relationships among trust, bargaining power, contracts and information sharing in supply chain coordination. An example from the retail distribution industry is used to illustrate these governance issues as key factors in the supply chain business model.
Ghosh, Anupam and Fedorowicz, Jane, "Governanance Mechanisms for Coordination and Information Sharing in Supply Chains: The Role of Trust" (2005). AMCIS 2005 Proceedings. 18.